I am doing an experiment to build a super performance stock portfolio for bear and bull market.
1. Buy nifty 50 stocks or top mid caps stocks which has been corrected by 38% from latest peak.
2. Buy stocks whose short term RSI reduced below 10
3. Stocks are in strong uptrend and creating lower lows in daily chart
4. Stocks trading above 10 MA and taking support to 50 ma or 200 MA
5. Stocks formed a bullish reversal near strong support line in weekly or daily support
How to place orders to buy stocks at correct levels
1. Place stop loss buy order at previous day low and VWAP
2. Buy stocks once the stock is trading above VWAP and 10 ma in 5 min time frame
3. Super trend gave fresh buy signal on daily time frame
4. Buy stocks if it trades above 0.8% above 1 SD based on daily volatility
Maximum amount
I will buy stocks in equal proportions and my target is to have 1 lot of shares.
Exit and profit book
Will keep stocks as long as they are part of Nifty 50
How many stocks to buy in portfolio
Portfolio beta
Maximum portfolio should be around 1.5 of nifty
How to hedge the fund?
Fund will be protected for 20 % downfall by long term put option. Will restrict premium to 3% to 5% of the portfolio value.
Monthly return
Will sell 3 months OTM call options with delta 20. Will pledge my stocks and use the same margin to sell Call options.
Will sell stock specific cash rich put stock option
Steps to identify right stocks to buy
1. Buy nifty 50 stocks or top mid caps stocks which has been corrected by 38% from latest peak.
2. Buy stocks whose short term RSI reduced below 10
3. Stocks are in strong uptrend and creating lower lows in daily chart
4. Stocks trading above 10 MA and taking support to 50 ma or 200 MA
5. Stocks formed a bullish reversal near strong support line in weekly or daily support
How to place orders to buy stocks at correct levels
1. Place stop loss buy order at previous day low and VWAP
2. Buy stocks once the stock is trading above VWAP and 10 ma in 5 min time frame
3. Super trend gave fresh buy signal on daily time frame
4. Buy stocks if it trades above 0.8% above 1 SD based on daily volatility
Maximum amount
I will buy stocks in equal proportions and my target is to have 1 lot of shares.
Exit and profit book
Will keep stocks as long as they are part of Nifty 50
How many stocks to buy in portfolio
- Reliance
- VEDL
- LT
- Infosys
- ITC
- Kotakbank
- Gail
- UPL
- HDFC
- HDFC bank
Portfolio beta
Maximum portfolio should be around 1.5 of nifty
How to hedge the fund?
Fund will be protected for 20 % downfall by long term put option. Will restrict premium to 3% to 5% of the portfolio value.
Monthly return
Will sell 3 months OTM call options with delta 20. Will pledge my stocks and use the same margin to sell Call options.
Will sell stock specific cash rich put stock option
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